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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 21,1998
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ORBITAL SCIENCES CORPORATION
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DELAWARE 0-18287 06-1209561
(State of incorporation) (Commission File Number) (I.R.S. Employer I.D. No.)
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21700 ATLANTIC BOULEVARD
DULLES, VIRGINIA 20166
(703) 406-5000
(Address and telephone number
of principal executive offices)
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ITEM 5. OTHER EVENTS.
On July 21, 1998, Orbital Sciences Corporation ("Orbital" or the
"company") announced its second quarter 1998 financial results, reporting
revenues of $184,516,000, an increase of 30% over 1997 second quarter revenues
of $142,226,000. Quarterly net income increased 32% from last year, totaling
$7,419,000 in the second quarter of 1998 as compared to $5,603,000 in the 1997
comparable quarter. The company also reported 1998 second quarter earnings per
share on a fully diluted basis of $0.21, up 24% compared to $0.17 earnings per
share on a fully diluted basis for the second quarter of 1997.
The company's revenues in the first half of 1998 were $370,675,000,
an increase of 40% over 1997 first half revenues of $264,338,000. Net income for
the first six months increased 30% from last year, totaling $13,938,000 in 1998
as compared to $10,697,000 in the 1997 comparable period. The company also
reported 1998 first half earnings per share on a fully diluted basis of $0.41,
up 24% compared to $0.33 earnings per share on a fully diluted basis for the
first six months of 1997.
The company's financial results by business sector were as follows:
- - For the second quarter of 1998, Orbital's space and ground
infrastructure systems sector, including launch vehicles, satellites,
electronics and sensors, and ground systems, reported revenues of $155,701,000,
an increase of 27% over 1997 second quarter revenues of $122,523,000.
Infrastructure systems provided net income of approximately $19,061,000 in the
1998 second quarter, up 80% over 1997 second quarter net income of $10,597,000.
For the first half of 1998, Orbital's space and ground infrastructure systems
sector reported revenues of $312,042,000, an increase of 36% over 1997 six-month
revenues of $228,722,000. Infrastructure systems provided net income of
approximately $35,022,000 in the first six months of 1998, up 88% over net
income of $18,666,000 in the comparable period in 1997.
- - The company's satellite access products sector, including mobile
satellite navigation, positioning and communications products and transportation
management systems, generated revenues of $28,556,000 for the quarter, an
increase of 44% over the 1997 comparable quarter. This sector reported a net
loss in the second quarter of 1998 of $4,914,000 compared to net income of
$634,000 in the 1997 quarter as a result of lower than expected sales of
automotive navigation and other access products. The company's satellite access
products sector generated revenues of $58,310,000 for the first half of 1998, an
increase of 64% over the 1997 comparable period. This sector reported a net loss
in the first half of 1998 of $5,683,000 as compared to net income of $1,352,000
in the 1997 six-month period.
- - As anticipated, the company's satellite services sector, consisting
of its ORBCOMM Global, L.P. ("ORBCOMM Global") and Orbital Imaging Corporation
("ORBIMAGE") affiliates, reported a net loss of $6,728,000 in the second
quarter of 1998 as compared to a net loss of $5,628,000 in the 1997 comparable
quarter. The second quarter 1998 loss was partially offset by a one-time gain
of $4,793,000 related to ORBIMAGE's equity and debt offerings completed earlier
this year. ORBCOMM Global and ORBIMAGE reported combined net losses
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of $15,401,000 in the first half of 1998 compared to net losses of $9,321,000 in
the 1997 comparable period.
In April, Orbital completed a public offering of 3.45 million shares
of its common stock, raising gross proceeds of $158 million to fund its
anticipated future growth and investments in satellite-related businesses. On
July 10, 1998, the company's stock began trading on the New York Stock Exchange
under the ticker symbol "ORB."
During the second quarter, the company also announced plans for a
$50-plus million, multi-year expansion of its satellite-related engineering,
manufacturing and operations facility adjacent to the company's current
headquarters site in Dulles, VA. The expansion will include a new satellite
assembly, integration and test facility that will support nearly two and a half
times the company's current spacecraft manufacturing volume. The new integrated
satellite factory will permit Orbital to design, manufacture and test its full
line of advanced technology small- and medium-class satellite platforms.
ORBITAL SCIENCES CORPORATION
FINANCIAL RESULTS SUMMARY
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SECOND QUARTER RESULTS:
June 30, 1998 June 30, 1997 % Increase (Decrease)
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Revenues $184,516,000 $142,226,000 30%
Gross Profit $ 50,851,000 $ 39,673,000 28%
Operating Income $ 9,438,000 $ 11,005,000 (14%)
Net Income $ 7,419,000 $ 5,603,000 32%
Fully Diluted EPS $ 0.21 $ 0.17 24%
FIRST HALF RESULTS:
June 30, 1998 June 30, 1997 % Increase
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Revenues $370,675,000 $264,338,000 40%
Gross Profit $102,225,000 $ 73,351,000 39%
Operating Income $ 25,485,000 $ 17,052,000 49%
Net Income $ 13,938,000 $ 10,697,000 30%
Fully Diluted EPS $ 0.41 $ 0.33 24%
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ORBITAL SCIENCES CORPORATION
Date: July 22, 1998 By: /s/ Jeffrey V. Pirone
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Jeffrey V. Pirone
Executive Vice President and
Chief Financial Officer
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